An application by FortisBC to meet the Okanagan’s growing energy needs was denied this week by the province’s utilities commission.
On Friday, the B.C. Utilities Commission (BCUC) announced that it was denying FortisBC Energy’s $327-million Okanagan Capacity Upgrade project, which included building 30 kilometres of natural gas pipeline.
Citing the Okanagan’s spike in growth, FortisBC says the project is about meeting energy needs and that it would be an extension of its existing natural gas system.
“This expansion would strengthen our system for approximately 110,000 homes and businesses in the Okanagan that rely on our natural gas service every day,” FortisBC says on its website.
Currently, the Central Okanagan is home to approximately 235,000 people. In 2011, the region’s population was around 179,000.
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In 2018, the City of Kelowna projected the area would see another 40,000 residents by 2040. Last year, the Central Okanagan Economic Development Commission estimated the region’s population would reach 325,000 40 to 50 years from now.
FortisBC says its existing pipeline infrastructure won’t be able to meet the region’s growing demands, possibly as early as the winter of 2026-27.
Despite that claim, the BCUC determined the project wasn’t in the public’s interest.
“The BCUC found that FortisBC’s application did not consider the possibility that demand for natural gas in the Okanagan region could flatten or decrease over the next 20 years, due, in part, to BC’s CleanBC Roadmap commitments, BC Building and BC Energy Step Codes impacts, and other planning guidelines or zoning bylaws.”
The BCUC says it has directed FortisBC to “examine other short-term solutions and file a mitigation plan with the BCUC by the end of July 2024.”
The BCUC said its review included multiple rounds of information requests, a procedural conference, evidence and input from several interest groups, and feedback from the public through 96 letters of comment.
In a press release, FortisBC called the decision disappointing.
“We have received and are reviewing the BCUC’s decision, but we are disappointed that our application to develop this important piece of infrastructure has been denied,” said FortisBC.
“The Okanagan Capacity Upgrade project is required to meet peak energy demand in the Okanagan region, which occurs during colder winter months when customers rely on gas to heat their homes and businesses.”
Earlier this month, FortisBC announced that beginning Jan. 1, its natural gas customers will see a bill decrease of about $1 a month.
However, two days later, it also announced that its electricity customers would see a 6.74 per cent rate increase that was approved by the BCUC.
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